A former TD Bank employee in the U.S. is facing criminal charges for allegedly using their position at the financial institution to facilitate money laundering — the second time this year a former worker has been charged.
The indictment announced Wednesday appears to be connected to the massive anti-money laundering probe against the Canadian lender’s U.S. operations that resulted in a US$3-billion fine in October.
The U.S. Department of Justice said Leonardo Ayala, 24, was arrested and charged Tuesday on allegations he helped launder millions of dollars of drug trafficking proceeds to Colombia.
According to the indictment, Ayala worked at a TD Bank location in Doral, Florida, between February and November 2023.
Starting in June 2023, prosecutors say, Ayala allegedly assisted a money laundering network by issuing dozens of debit cards for accounts opened in the names of shell companies in exchange for bribes.
Those accounts were opened by another, unnamed TD Bank employee, according to the indictment.
“Those accounts were then allegedly used to launder millions of dollars in narcotics proceeds through cash withdrawals at ATMs in Colombia,” the DOJ said in a statement.
Ayala made his initial court appearance in Miami after his arrest, but is set to be prosecuted in New Jersey, whose attorney general also announced the indictment Wednesday. The allegations in the indictment have yet to be proven in court.
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“We identified the activity, reported it, and cooperated closely with authorities in their investigation. We continue to actively support their efforts,” a TD spokesperson told Global News.
The charge Ayala faces, conspiracy to commit money laundering, carries a maximum penalty of 20 years in prison and a fine of US$500,000 or twice the amount involved in the offense, whichever is greater.
In October, TD Bank’s U.S. arm pleaded guilty to violating U.S. anti-money laundering laws — the largest bank ever to do so — and creating what prosecutors called a “convenient” environment for bad actors to exploit for years.
TD agreed to pay over US$3 billion in penalties to resolve the charges. The plea deal also included a rare imposition of an asset cap and other limitations on the bank’s U.S. business, preventing a planned expansion plan.
At the time the plea deal was announced, U.S. officials said TD employees received at least US$57,000 in gift cards in 2020 and 2021 from one criminal who moved more than US$400 million in transactions through the bank.
In one case, prosecutors alleged, money laundering networks deposited funds in the U.S. and quickly withdrew them using ATMs in Colombia, ultimately laundering millions — allegations that match the indictment announced Wednesday.
Five TD employees conspired with the network in the alleged scheme, the U.S. Justice Department said in October.
In November, a former TD Bank employee who worked in the anti-money laundering division in Manhattan was charged with allegedly stealing customers’ personal information and distributing it on Telegram.
TD has said it is making the investments, changes and enhancements required to deliver on commitments regarding its anti-money laundering programs in Canada and the U.S.
Fintrac, Canada’s national financial intelligence agency, imposed a record $9.2 million penalty on TD earlier this year for lax money laundering controls.
Prime Minister Justin Trudeau said in October he is “concerned” about the actions alleged at TD, and the federal government says it has introduced a significant number of measures to strengthen Canada’s money laundering oversight.
—with files from Reuters
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